As lenders begin introducing compliance changes ahead of the Mortgage Market Review (MMR), Roy Armitage, head of risk at Kensington said working hard to prove affordability will help lenders process cases faster.

Armitage said decisions in principle often include credit bureaux data and application scores, giving a clearer indication of the likely success of the borrower very early.

Also, he added rigorous forensic data gathering up front on everything from basic spending habits to committed financial expenditure such as personal loans, for example, will all help.

Kensington alerted brokers this week that from 1 February (tomorrow), all applications must be submitted alongside the additional data requirements form and if requested, a household monthly living expenditure form.

The early adoption dates aim to avoid the re-submission of pipeline cases after the 26 April MMR rules hit the statute book.

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The additional data form specifically checks the borrower is not credit impaired according to the FCA’s definition.

Broadly-speaking, the FCA’s MCOB definition of credit impaired is an applicant who has fallen substantially behind on their mortgage, or had one or two County Court Judgments (CCJs) worth over £500, had an IVA or been bankrupt in the last three years.

Armitage said: “The MMR regulations introduced on 26 April will require a more granular understanding of an applicant’s income and outgoings in order to assess affordability both now and into the near to medium future.”

He added some lenders, like Kensington, have already changed their affordability models with MMR in mind and therefore the changes brought about by the detailed MMR rules will be “relatively modest.”

“However, lenders that are less advanced in this process, may have to make more significant changes to their affordability approach to remain compliant,” he warned.